UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of report: July 21, 2004
TEEKAY SHIPPING CORPORATION
(Exact
name of Registrant as specified in its charter)
TK House
Bayside Executive Park
West Bay
Street & Blake Road
P.O. Box AP-59212, Nassau, Bahamas
(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40- F
[Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ]
Yes No X
[Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ]
Yes No X
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- ]
Item 1 - Information Contained in this Form 6-K Report
| Attached as Exhibit I is a copy of an announcement of Teekay Shipping Corporation (the “Company”), dated July 21, 2004. |
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION STATEMENTS OF THE COMPANY.
• REGISTRATION STATEMENT ON FORM F-3 (NO. 33-97746) FILED WITH THE SEC ON OCTOBER 4, 1995;
• REGISTRATION
STATEMENT ON FORM S-8 (NO. 333-42434) FILED WITH THE SEC ON JULY 28, 2000; AND
• REGISTRATION STATEMENT
ON FORM F-3 (NO. 333-102594) FILED WITH THE SEC ON JANUARY 17, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: July 21, 2004 | TEEKAY SHIPPING CORPORATION By: /s/ Peter Evensen Peter Evensen Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
EXHIBIT I
 |
TEEKAY SHIPPING CORPORATION TK House, Bayside Executive Park, West Bay Street & Blake Road P.O. Box AP-59212, Nassau, Bahamas |
EARNINGS RELEASE
TEEKAY SHIPPING CORPORATION
REPORTS RECORD SECOND QUARTER NET INCOME
2nd Quarter Highlights
- Achieved highest ever second quarter net income of $98.5 million
- Generated highest ever cash flow from vessel operations from fixed-rate contract business of $76.0 million
- Completed acquisition of Naviera F. Tapias S.A. on April 30, 2004
- Awarded three long-term charter contracts to export LNG from Qatar
- Completed two-for-one stock split effective May 17, 2004
Nassau, The Bahamas, July 21, 2004 — Teekay Shipping Corporation today reported net income of $98.5 million, or $1.13 per share, for the quarter ended June 30, 2004, compared to net income of $96.9 million, or $1.20 per share, for the quarter ended June 30, 2003. The results for the second quarter of 2004 included an unrealized foreign currency translation loss of $5.2 million, or $0.06 per share, relating to long-term debt denominated in Euros. The results for the second quarter of 2003 included $4.7 million, or $0.06 per share, in write-downs to the carrying value and losses on the sale of certain older vessels. Net voyage revenues(1) for the second quarter of 2004 were $368.9 million compared to $353.1 million for the same period in 2003, and income from vessel operations decreased to $122.1 million from $127.7 million.
The results for the second quarter of 2004 reflect the inclusion of the results from Naviera F. Tapias S.A. (renamed Teekay Shipping Spain S.A.) from May 1, 2004 and an increase in the Company’s existing fixed-rate business, partially offset by the sale of certain older spot vessels over the past 12 months.
Spot tanker rates during the second quarter of 2004 remained strong as Teekay’s spot Aframax fleet averaged $27,567 per calendar-ship day, a slight increase from the average of $27,327 per calendar-ship day for the same period in 2003. However, unlike 2003 when the strength of spot tanker rates in the second quarter was amplified by the temporary disruption of oil supplies from Venezuela, which resulted in an increase in longer-haul West Africa and Middle East oil production, the strong market in 2004 has been primarily the result of fundamental oil demand growth.
Net income for the six months ended June 30, 2004 was $287.6 million, or $3.32 per share, compared to $150.5 million, or $1.86 per share, for the same period last year. The results for the six months ended June 30, 2004 included a $5.2 million, or $0.06 per share unrealized foreign currency translation loss relating to the above-mentioned Euro denominated debt. The results for the six months ended June 30, 2003 included $30.5 million, or $0.38 per share in write-downs to the carrying value of certain older vessels, and a $4.9 million, or $0.06 per share, write-down in the carrying value of certain marketable securities. Net voyage revenues(1) for the six months ended June 30, 2004 were $816.5 million, compared to $566.0 million in the same period last year, while income from vessel operations increased to $330.7 million from $205.4 million.
Expansion of Teekay’s LNG Platform into Qatar
On July 1, 2004, the Company announced that it had been awarded long-term contracts to charter three liquefied natural gas (LNG) carriers to Ras Laffan Liquefied Natural Gas Co. Limited (RasGas II), a joint venture company between Exxon Mobil Corporation and Qatar Petroleum. The vessels will be chartered to RasGas II for a period of 20 years (with options to extend up to 35 years), commencing in late 2006 and early 2007. Concurrently, the Company placed orders for three 151,700 m3 LNG carriers from Daewoo Shipbuilding and Marine Engineering Co. Ltd. for approximately $510 million. At this time, these are the largest LNG ships ever ordered. Qatar Gas Transport Company is expected to acquire a 30% interest in the vessels through a joint venture with Teekay.
(1) Net voyage revenues represents voyage revenues less voyage expenses. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. See the Company’s website at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
Operating Results
The following table highlights certain financial information of Teekay’s three main segments, the spot tanker segment, the fixed-rate tanker segment and the Company’s new fixed-rate LNG segment (see the “Teekay Fleet” section of this release for further details:
---------------------------------- ---------------------------------------------------- ----------------------------------------
Three Months Ended Three Months Ended
June 30, 2004 June 30, 2003
(unaudited) (unaudited)
Spot Fixed-Rate Fixed-Rate Fixed-Rate
Tanker Tanker LNG Spot Tanker Tanker
(in thousands of U.S. dollars) Segment Segment Segment Total Segment Segment Total
---------------------------------- ------------ ------------- ------------ ------------ ------------- ------------ -------------
Net voyage revenues 202,965 158,065 7,884 368,914 222,186 130,898 353,084
Vessel operating expenses 23,752 28,376 1,637 53,765 32,415 23,115 55,530
Time-charter hire expense 60,369 46,205 - 106,574 50,828 42,655 93,483
Depreciation & amortization 25,976 32,493 2,377 60,846 27,800 21,975 49,775
Cash flow from vessel
operations* 106,523 70,490 5,506 182,519 125,950 56,212 182,162
--------------------------------- ------------ ------------- ------------ ------------ ------------- ------------ -------------
* Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and vessel write-downs/(gain)loss on sale of vessels. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. See the Company’s website at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
Fixed-Rate Tanker Segment
For the quarter ended June 30, 2004, cash flow from vessel operations from the Company’s fixed-rate tanker segment increased to $70.5 million from $56.2 million for the second quarter of 2003, primarily due to the addition of five conventional tankers on charter to ConocoPhillips and the inclusion of Teekay Shipping Spain’s fixed-rate Suezmax tanker results from May 1, 2004.
Fixed-Rate LNG Segment
The acquisition of Tapias established Teekay’s presence in LNG shipping, the fastest growing sector of sea-borne energy transportation. The LNG segment operating results for the second quarter of 2004 consists of Teekay Shipping Spain’s two existing LNG carriers from May 1, 2004, which generated $5.5 million of cash flow from vessel operations. In July 2004, the Company took delivery of a third newbuilding LNG carrier, which commenced service under a 25-year charter contract and a fourth newbuilding LNG carrier is expected to deliver in the fourth quarter of 2004. In addition, the three LNG carriers ordered for the RasGas II project are expected to deliver in late 2006 and early 2007.
Spot Tanker Segment
Cash flow from vessel operations from the Company’s spot tanker segment for the quarter ended June 30, 2004 decreased to $106.5 million from $126.0 million in the second quarter of 2003, primarily due to the sale of a number of older single-hull vessels during the last 12 months, partially offset by newbuilding deliveries and additional in-chartered vessels. On a net basis, these fleet changes reduced the total number of calendar ship days for the spot tanker segment by 691 days in the second quarter of 2004 compared to the second quarter of 2003.
The following table highlights the operating performance of the Company’s spot tanker segment measured in net voyage revenues per calendar-ship-day, or time-charter equivalent (TCE).
---------------------------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2004 March 31, 2004 June 30, 2003 June 30, 2004 June 30, 2003
---------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment
Very Large Crude Carrier Fleet
Calendar-Ship Days 273 273 176 546 266
TCE per calendar-ship-day $54,788 $71,062 $43,261 $62,925 $55,075
Suezmax Tanker Fleet
Calendar-Ship Days 647 561 612 1,208 612
TCE per calendar-ship-day $36,879 $65,018 $45,180 $49,947 $45,180
Aframax Tanker Fleet
Calendar-Ship Days 5,152 5,122 5,597 10,274 10,757
TCE per calendar-ship-day $27,567 $40,235 $27,327 $33,883 $28,015
Oil/Bulk/Ore Fleet
Calendar-Ship Days - 157 646 157 1,366
TCE per calendar-ship-day - $20,822 $17,209 $20,822 $17,507
Large Product Tanker Fleet
Calendar-Ship Days 503 395 177 898 177
TCE per calendar-ship-day $20,332 $27,478 $42,881 $23,476 $42,881
Small Product Tanker Fleet
Calendar-Ship Days 902 847 960 1,749 960
TCE per calendar-ship-day $13,188 $13,510 $12,155 $13,344 $12,155
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Tanker Market Overview
During the second quarter of 2004, tanker freight rates declined from the near record levels reached in the prior quarter, yet remained at relatively high levels when compared to historical averages due to continued favourable tanker market fundamentals.
Global oil demand, an underlying driver of tanker demand, continued to be strong averaging 80.4 million barrels per day (mb/d) during the second quarter of 2004, a decline of 1.1 mb/d from the previous quarter but 3.9 mb/d higher than the second quarter of 2003. The year-on-year increase in global oil demand during the second quarter of 2004 was attributable mainly to the recovery of the global economy. On July 13, 2004, the International Energy Agency (IEA) raised its forecast for 2004 oil demand to 81.4 mb/d, which represents a 2.5 mb/d, or 3.2% increase over 2003 demand, the highest growth rate in 25 years. For 2005, the IEA forecasts a further increase in oil demand of 1.8 mb/d, or 2.2% over 2004, to 83.2 mb/d.
Global oil supply grew by 0.1 mb/d to 81.9 mb/d in the second quarter of 2004 compared with the first quarter of 2004. OPEC production rose by 0.2 mb/d due to increased output from Saudi Arabia while non-OPEC production levels declined by 0.1 mb/d as a result of a decrease in North American and European output. At its June 3, 2004 meeting, OPEC raised its production quota by 2.0 mb/d to 25.5 mb/d, effective on July 1, 2004 in a bid to meet strong global oil demand. On July 15, 2004, OPEC announced that it would raise its output quota by a further 0.5 mb/d, effective on August 1, 2004.
The size of the world tanker fleet increased to 324.0 million deadweight tonnes (mdwt) as of June 30, 2004, up 0.8% from the end of the previous quarter. Deletions totaled 2.8 mdwt in the second quarter of 2004 down from 4.1 mdwt in the previous quarter. Deliveries of tanker newbuildings during the second quarter of 2004 totaled 5.6 mdwt compared to the 8.5 mdwt in the previous quarter.
As of June 30, 2004, the world tanker orderbook stood at 84.9 mdwt, representing 26.2% of the total world tanker fleet compared to 81.6 mdwt or 25.4% at the end of the previous quarter.
Teekay Fleet
As at July 1, 2004, Teekay’s fleet (excluding vessels managed for third parties) consisted of 168 vessels, including 51 chartered-in vessels and 20 newbuildings on order. During the second quarter, the Company took delivery of three newbuildings: the EVEREST SPIRIT (Aframax tanker) and the AXEL SPIRIT (Aframax tanker) which will trade in the spot market; and the NORDIC RIO (Suezmax tanker) which completed its conversion to a shuttle tanker and commenced on long-term charter to Petrobras Transporte S.A.
The following table summarizes the Teekay fleet as at July 1, 2004 (incorporating the three LNG vessels ordered as part of the RasGas II contracts):
----------------------------------------------------------------------------------------------------------------------------
Number of Vessels (1)
-----------------------------------------------------------------------
Owned Chartered-in Newbuildings on Total
Vessels Vessels Order
----------------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment:
Very Large Crude Carriers 1 2 - 3
Suezmax Tankers 4 5 1 10
Aframax Tankers 44 14 7 65
Large Product Tankers - 6 3 9
Small Product Tankers - 10 - 10
----------------------------------------------------------------------------------------------------------------------------
Total Spot Tanker Segment 49 37 11 97
----------------------------------------------------------------------------------------------------------------------------
Fixed-Rate Tanker Segment:
Shuttle Tankers (2) 30 13 - 43
Conventional Tankers 11 - 4 15
Floating Storage & Offtake (FSO) Units (3) 4 - - 4
LPG / Methanol Carriers 1 1 - 2
----------------------------------------------------------------------------------------------------------------------------
Total Fixed-Rate Tanker Segment 46 14 4 64
----------------------------------------------------------------------------------------------------------------------------
Fixed-Rate LNG Segment 2 - 5 7
----------------------------------------------------------------------------------------------------------------------------
Total 97 51 20 168
============================================================================================================================
(1)
Does not include vessels managed on behalf of third parties
(2)
Includes seven shuttle tankers of which the Company’s ownership interests range from 50% to 70.25%.
(3)
Includes one FSO unit in which the Company’s ownership
interest is 89%
During the second quarter, as part of its ongoing fleet renewal program, the Company entered into agreements to sell four of its single-hull vessels: the MUSASHI SPIRIT (1993-built VLCC), the PACIFIC SPIRIT (1988-built Aframax tanker), the SHILLA SPIRIT (1990-built Aframax tanker), and the ULSAN SPIRIT (1990-built Aframax tanker) for total gross proceeds of approximately $102 million. These vessels are expected to deliver to the buyers during the third quarter, at which time the Company expects to record a gain of approximately $25 million on the sale of the vessels. In addition, in July 2004 the Company took delivery of two newbuildings: the ESTHER SPIRIT (Aframax tanker) which entered the spot tanker fleet and the GALICIA SPIRIT (LNG carrier), acquired as part of the Tapias transaction, which commenced service under a 25-year fixed-rate charter contract to Union Fenosa Gas S.A.
Liquidity and Capital Expenditures
As at June 30, 2004, the Company had total liquidity of $540.8 million, comprising $215.7 million in cash and cash equivalents and $321.1 million in undrawn medium-term revolving credit facilities.
As at July 1, 2004, including the RasGas II LNG newbuildings, the Company had approximately $1,132 million in remaining capital commitments relating to its 20 newbuildings on order. Of this, approximately $312 million was due during the second half of 2004, $378 million in 2005, $250 million in 2006 and $192 million due in 2007 and early 2008. For the remaining capital commitments, long-term financing arrangements totaling approximately $897 million exist for 15 of the 20 newbuildings on order.
Sale of A/S Dampskibsselskabet TORM Shares
On July 16, 2004, the Company announced that it had sold its 16 percent stake in A/S Dampskibsselskabet TORM (TORM), acquired in July 2003 for a total cost of $37.3 million, for total proceeds of approximately $130.2 million. The Company has recognized a gain on sale of $2.2 million in the second quarter of 2004 and will recognize an additional gain of approximately $88 million in the third quarter of 2004, representing a total return of over 250% (including $5.7 million in dividends received in the second quarter of 2004).
About Teekay
Teekay Shipping Corporation transports more than 10 percent of the world’s sea-borne oil and is also expanding its position in the rapidly growing liquefied natural gas shipping sector. With a fleet of over 160 tankers, offices in 14 countries and approximately 5,500 seagoing and shore-based employees, the Company provides a uniquely-wide range of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay’s reputation for safety, quality and innovation has earned it a position in the global energy industry as the premier marine midstream company.
Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.
Earnings Conference Call
The Company plans to host a conference call at 11:00 a.m. EDT (8:00 a.m. PDT) on July 22, 2004, to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call and view the Company’s earnings presentation through the Company’s web site at www.teekay.com. The presentation will be available on the web site prior to the conference call. A recording of the call will be available until July 29, 2004 by dialing (719) 457-0820, access code 516648, or via the Company’s web site until August 22, 2004.
For Investor Relations
enquiries contact:
Scott Gayton
Tel: +1 (604) 844-6654
For other Media
enquiries contact:
Kim Barbero
Tel: +1 (604) 609-4703
Web site: www.teekay.com
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except share and per share data)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2004 2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
VOYAGE REVENUES 477,622 551,451 462,271 1,029,073 744,503
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
OPERATING EXPENSES
Voyage expenses 108,708 103,884 109,187 212,592 178,521
Vessel operating expenses 53,765 48,912 55,530 102,677 98,176
Time-charter hire expense 106,574 108,665 93,483 215,239 106,394
Depreciation and amortization 60,846 53,614 49,775 114,460 88,905
General and administrative 25,816 27,625 20,597 53,441 35,324
Vessel write-downs/(gain) loss on sale
of vessels (450) (603) 4,711 (1,053) 30,498
Restructuring charge 240 762 1,312 1,002 1,312
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
355,499 342,859 334,595 698,358 539,130
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
Income from vessel operations 122,123 208,592 127,676 330,715 205,373
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
OTHER ITEMS
Interest expense (30,672) (21,563) (21,700) (52,235) (36,086)
Interest income 4,883 1,254 1,287 6,137 2,133
Income tax expense (6,086) (2,149) (13,864) (8,235) (17,186)
Equity income from joint ventures 3,288 1,836 1,611 5,124 2,396
Other - net 5,007 1,039 1,865 6,046 (6,176)
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
(23,580) (19,583) (30,801) (43,163) (54,919)
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
Net income 98,543 189,009 96,875 287,552 150,454
======================================= ================ ================= ================= ================ =================
Earnings per common share
- Basic $1.19 $2.32 $1.22 $3.50 $1.89
- Diluted $1.13 $2.18 $1.20 $3.32 $1.86
--------------------------------------- ---------------- ----------------- ----------------- ---------------- -----------------
Weighted-average number of common
shares outstanding
- Basic 82,603,379 81,620,792 79,651,592 82,112,086 79,566,668
- Diluted * 87,340,951 86,522,164 81,045,440 86,697,235 80,911,462
======================================= ================ ================= ================= ================ =================
*Reflects the effect of outstanding stock options and the $143.75 million mandatory convertible preferred PEPS units, computed using the treasury stock method
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
As at June 30, As at December 31,
2004 2003
(unaudited)
ASSETS
Cash and cash equivalents 215,743 292,284
Other current assets 242,557 188,249
Restricted cash - current 77,120 -
Restricted cash - long-term 318,339 -
Marketable securities - long-term 139,654 95,511
Vessels and equipment 3,184,503 2,424,204
Advances on newbuilding contracts 321,130 150,656
Other assets 203,874 187,798
Intangible assets 293,968 118,588
Goodwill 179,303 130,754
-------------------------------------------------------------------- ------------------------- -------------------------
Total Assets 5,176,191 3,588,044
==================================================================== ========================= =========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities 148,262 171,411
Current portion of long-term debt 213,000 103,221
Long-term debt 2,605,789 1,533,537
Other long-term liabilities 211,637 112,726
Minority interest 14,179 15,322
Stockholders' equity 1,983,324 1,651,827
-------------------------------------------------------------------- ------------------------- -------------------------
Total Liabilities and Stockholders' Equity 5,176,191 3,588,044
==================================================================== ========================= =========================
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TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Six Months Ended
June 30,
2004 2003
(unaudited) (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from operating activities 390,052 260,698
-------------------------------------------------------------------- ------------------------- -------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 874,236 1,496,499
Scheduled repayments of long-term debt (76,662) (37,203)
Prepayments of long-term debt (704,170) (945,000)
Other 1,214 (10,691)
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from financing activities 94,618 503,605
-------------------------------------------------------------------- ------------------------- -------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (257,588) (115,657)
Expenditures for the purchase of Naviera F. Tapias S.A. (286,112) -
Expenditures for the purchase of Navion ASA - (703,590)
Proceeds from disposition of assets 8,806 42,615
Other (26,317) 20,903
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from investing activities (561,211) (755,729)
-------------------------------------------------------------------- ------------------------- -------------------------
(Decrease) increase in cash and cash equivalents (76,541) 8,574
Cash and cash equivalents, beginning of the period 292,284 284,625
-------------------------------------------------------------------- ------------------------- -------------------------
Cash and cash equivalents, end of the period 215,743 293,199
==================================================================== ========================= =========================
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TEEKAY SHIPPING CORPORATION
APPENDIX A — SUPPLEMENTAL INFORMATION
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended June 30, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues 202,965 158,065 7,884 368,914
Vessel operating expenses 23,752 28,376 1,637 53,765
Time-charter hire expense 60,369 46,205 - 106,574
Depreciation and amortization 25,976 32,493 2,377 60,846
General and administrative 12,081 12,994 741 25,816
Vessel write-downs/(gain) loss
on sale of vessels (450) - - (450)
Restructuring charge 240 - - 240
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 80,997 37,997 3,129 122,123
================================== ======================== ===================== ==================== ===================
Three Months Ended March 31, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues 288,081 159,486 - 447,567
Vessel operating expenses 23,453 25,459 - 48,912
Time-charter hire expense 59,555 49,110 - 108,665
Depreciation and amortization 24,886 28,728 - 53,614
General and administrative 13,018 14,607 - 27,625
Vessel write-downs/(gain) loss
on sale of vessels (603) - - (603)
Restructuring charge 762 - - 762
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 167,010 41,582 - 208,592
================================== ======================== ===================== ==================== ===================
Three Months Ended June 30, 2003
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues 222,186 130,898 - 353,084
Vessel operating expenses 32,415 23,115 - 55,530
Time-charter hire expense 50,828 42,655 - 93,483
Depreciation and amortization 27,800 21,975 - 49,775
General and administrative 12,993 7,604 - 20,597
Vessel write-downs/(gain) loss
on sale of vessels 4,711 - - 4,711
Restructuring charge - 1,312 - 1,312
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 93,439 34,237 - 127,676
================================== ======================== ===================== ==================== ===================
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
APPENDIX A — SUPPLEMENTAL INFORMATION CONTINUED
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Six Months Ended June 30, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues 491,046 317,551 7,884 816,481
Vessel operating expenses 47,205 53,835 1,637 102,677
Time-charter hire expense 119,924 95,315 - 215,239
Depreciation and amortization 50,862 61,221 2,377 114,460
General and administrative 25,099 27,601 741 53,441
Vessel write-downs/(gain) loss
on sale of vessels (1,053) - - (1,053)
Restructuring charge 1,002 - - 1,002
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 248,007 79,579 3,129 330,715
================================== ======================== ===================== ==================== ===================
Six Months Ended June 30, 2003
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues 395,654 170,328 - 565,982
Vessel operating expenses 64,028 34,148 - 98,176
Time-charter hire expense 63,739 42,655 - 106,394
Depreciation and amortization 54,667 34,238 - 88,905
General and administrative 24,582 10,742 - 35,324
Vessel write-downs/(gain) loss
on sale of vessels 30,498 - - 30,498
Restructuring charge - 1,312 - 1,312
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 158,140 47,233 - 205,373
================================== ======================== ===================== ==================== ===================
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding the Company’s future growth prospects; tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates; newbuilding delivery dates and the commencement of service under long-term contracts; Qatar Gas Transport Company’s ownership interest in the RasGas II LNG vessels; the growth prospects of the LNG shipping sector; the Company’s future capital expenditure commitments and the financing requirements for such commitments; and the gain in the third quarter of 2004 relating to the sale of the Company’s 16% ownership in TORM and four of its single-hull vessels. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil, petroleum products and LNG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in trading patterns significantly impacting overall tanker tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil; the potential inability of Teekay to integrate Tapias successfully; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; shipyard production delays; the Company’s future capital expenditure requirements; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2003. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
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TEEKAY SHIPPING CORPORATION
APPENDIX B — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands of U.S. dollars)
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Three Months Ended June 30, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Income from vessel operations 80,997 37,997 3,129 122,123
Depreciation and amortization 25,976 32,493 2,377 60,846
Vessel write-downs/(gain) loss
on sale of vessels (450) - - (450)
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Cash flow from vessel
operations (1) 106,523 70,490 5,506 182,519
================================== ======================== ===================== ==================== ===================
Three Months Ended June 30, 2003
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Income from vessel operations 93,439 34,237 - 127,676
Depreciation and amortization 27,800 21,975 - 49,775
Vessel write-downs/(gain) loss
on sale of vessels 4,711 - - 4,711
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Cash flow from vessel
operations (1) 125,950 56,212 - 182,162
================================== ======================== ===================== ==================== ===================
| (1) | Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and vessel write-down/gain (loss) on sale of vessels. Cash flow from vessel operations is included because certain investors use this data to measure a company’s financial performance. Cash flow from vessel operations is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States. |
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TEEKAY SHIPPING CORPORATION
APPENDIX B — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONTINUED
(in thousands of U.S. dollars)
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Three Months Ended June 30, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 290,688 178,935 7,999 477,622
Voyage expenses 87,723 20,870 115 108,708
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 202,965 158,065 7,884 368,914
================================== ======================== ===================== ==================== ===================
Three Months Ended March 31, 2004
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 375,856 175,595 - 551,451
Voyage expenses 87,775 16,109 - 103,884
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 288,081 159,486 - 447,567
================================== ======================== ===================== ==================== ===================
Three Months Ended June 30, 2003
(unaudited)
Spot Tanker Fixed-Rate Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 314,366 147,905 - 462,271
Voyage expenses 92,180 17,007 - 109,187
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 222,186 130,898 - 353,084
================================== ======================== ===================== ==================== ===================
| (2) | Net voyage revenues represents voyage revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain investors use this data to measure the financial performance of shipping companies. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to voyage revenues or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States. |